The Relationship between Innovation and the Performance of Small and Medium-Sized Businesses in the Industrial Sector: The Mediating Role of CSR

Rafael Becerra-Vicario, Daniel Ruiz-Palomo, Ana León-Gómez and José Manuel Santos-Jaén ()
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Rafael Becerra-Vicario: Department of Finance and Accounting, University of Malaga, 29016 Malaga, Spain
Daniel Ruiz-Palomo: Department of Finance and Accounting, University of Malaga, 29016 Malaga, Spain
Ana León-Gómez: Department of Economics and Business Administration, University of Malaga, 29016 Malaga, Spain
José Manuel Santos-Jaén: Department of Accounting and Finance, University of Murcia, 30100 Murcia, Spain

Economies, 2023, vol. 11, issue 3, 1-18

Abstract: This paper analyses the effect of innovation on the performance of Small and Medium Enterprises (SMEs) and how Corporate Social Responsibility (CSR) mediates this relationship. In order to evaluate our assumptions, a partial least squares structural equation model (PLS-SEM) was applied to a sample of 769 Spanish SMEs through a telephone survey conducted with company managers. The findings show that innovation and CSR have an impact on performance. Additionally, to these strong direct effects, CSR has a side effect that strengthens the beneficial effects of innovation on performance. Finally, the results demonstrate significant implications for both SME managers and owners, as they help them to develop innovation-related strategies, which will lead to higher organizational performance.

Keywords: competitive advantages; industrial sector; innovative capacity; innovation strategies; SME performance; corporate social responsibility (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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